← Hut 8 · FinancingEdit
Convertible senior note (Coatue Tactical Solutions Lending)
Jun 28, 2024 · ClosedTerms of issuance
Instrument
Convertible notes
Principal
$150.0M
Net proceeds
Coupon
8%
Issue date
Jun 28, 2024
Maturity
2029
Seniority
Conversion ratio
60.9942 shares / $1,000 principal
Settlement
Conversion terms
Reference stock price
Conversion premium
n/acalculated from conversion price & reference stock price
Conversion price
$16.395
Underlying shares
9,149,131calculated: principal ÷ conversion price, unless directly stated
Dilution %
10.1%calculated: underlying shares ÷ basic shares outstanding as of issue date
Conversion window opens
Early conversion trigger
Early conversion threshold
n/acalculated: conversion price × trigger %
Economic analysis
Effective annual cost
n/acalculated: coupon + capped-call cost amortized over the note's life — needs coupon, maturity, and (if hedged) capped-call cost
Interest savings vs. plain debt
n/anot shown — would require an assumed comparable straight-debt rate, which we do not fabricate
Implied option value / volatility
n/anot shown — would require an assumed volatility input, which we do not fabricate
Breakeven
n/anot shown — would require assumed reinvestment/discount-rate assumptions, which we do not fabricate
Maturity scenarios
Below $16.39Notes redeemed for cash at maturity (or company's election); no dilution.
Above $16.39In the money — full dilution from conversion, no hedge in place.
Context
Shares outstanding (as of issue date)
90,392,009
Stock price / market cap (as of issue date)
n/ano price on or before the issue date
Use of proceeds
Growth capex, general corporate purposes
Other financing outstanding (excl. this instrument)
American Bitcoin Corp private placement of Class A common stock ($220.1M), Two Prime revolving credit facility ($200.0M), Senior Secured Notes due 2042 — River Bend (Hut 8 DC LLC) ($3.25B), Senior Secured Notes due 2042 — Beacon Point (Beacon Point DC LLC) ($4.25B), Senior secured revolving credit facility (four-year) ($1.07B)
— of which existing debt
$8.99B
Existing cash
n/anot tracked in the system yet
Anti-dilution adjustment terms
Related acquisition
none
Related deal
none
Related site
none
Sources
ClosedHut 8 issues $150 million convertible senior note to Coatue
Jun 28, 2024